Investors cast doubt on plans
underlying Taiwan bank deals

On the surface, Mega Financial Holding might seem to be helping achieve what analysts of Taiwan's banking industry have urged for years: consolidation. So why is its share price going south?

Mega Financial, already one of Taiwan's biggest banking groups, last week announced plans to acquire up to 26% in Taiwan Business Bank, the island's 10th biggest lender by assets. The move is part of a plan that could make Taiwan Business Bank a full subsidiary of Mega Financial. That would create a behemoth with some 14% of Taiwan's...